FINM 036 Financial Decision Making Homework- University of Northampton
Length: 2,000 words (+/- 10%)
Learning Outcomes
1) Subject-Specific Knowledge, Understanding & Application
• Contextualize and critically evaluate financial data, recognizing, analyzing and responding to the complexity of ethical and legal issues whilst evaluating competing risks.
• Critically appraise a range of approaches to corporate governance, accountability and regulatory environments across different countries and cultures.
• Calculate, analyse and interpret financial information such as income statements, statements financial position, cash flow statements, budgets, product / service costing and capital budgets, appraising and communicating the results in an effective and reflective manner.
• Rigorouslycompare and contrast the various sources of finance available to an organization, the impact on and relevance of cost of capital within the decision-making process.
2) Employability & Changemaker Skills
• Independently apply multiple appropriate resources, strategies, and approaches.
• Justify chosen solutions and associated decisions to address complex problems / tasks.
Task
This homework requires students to produce an individual report analysing the performance and operations of a company listed on the Alternative Investment Market (AIM) of the London Stock Exchange within a selected sector. A list of companies is provided for students to select from.
Homework
The aim of this homework is to test students' knowledge and understanding of key accounting, corporate finance concepts, theories and tools that can be used to critically analyse organisations. It will also test the ability to present financial and non-financial informationand justify chosen solutions and associated decisions to address complex problems/tasks.
Task
You have been asked to write a report to the board of directors of one of the selected companies below as part of the interview process for your first appointment as a Finance Director of a company listed on AIM (which is the Alternative Investment Market for small companies) within the London Stock Exchange (LSE). The board of directors have asked you to write a report about your vision and strategic financial goals for the company.
The companies are within a selected sector of the AIM. Assume that your selected company has ambitions and plans to become a FTSE 100company (the Main Market for UK listed companies) in the near future (3 to 5 years).
Guide:
Remember you need to make an impression on the board of directors for you to be considered for the critical post of Finance Director. The essence of this homework is to test your knowledge and understanding of key accounting and corporate governance concepts, theories and tools and ability to present data in a concise manner.
Structure of Report:
You need to introduce the company, discuss the product or services, location, turnover, number of employees, the contribution of the sector to the UK economy.
To analyse, you need to compare the financial data / ratios of your selected company with either a competitor within the sector or the average of the sector.
As part of the environmental analysis of this sector, use of theories such as SWOT or PESTEL to explain issues that your companies may need to overcome within a competitive market.
Remember you need to make an impression on the board of directors for you to be considered for the critical post of Finance Director.
Note that you must select a company from the list below for AY2021/22
List of companies to select from for AY2021/2022
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Companies on London Stock Exchange
31 July 2021
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Admission Date
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Company Name
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ICB Super-Sector
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Country of Incorporation
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Market
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Company Market Cap (£m)
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06/11/2018
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RENALYTIX PLC
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Health Care
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United Kingdom
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AIM
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812.59
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25/09/2012
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CLINIGEN GROUP PLC
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Health Care
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United Kingdom
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AIM
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797.51
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13/09/2007
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CRANEWARE PLC
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Health Care
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United Kingdom
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AIM
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786.91
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12/10/2005
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CARETECH HOLDINGS PLC
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Health Care
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United Kingdom
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AIM
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719.62
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30/04/2002
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ADVANCED MEDICAL SOLUTIONS GROUP PLC
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Health Care
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United Kingdom
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AIM
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606.22
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15/07/2014
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ERGOMED PLC
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Health Care
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United Kingdom
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AIM
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600.47
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17/12/2015
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ALLIANCE PHARMA PLC
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Health Care
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United Kingdom
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AIM
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556.72
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05/01/2010
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SILENCE THERAPEUTICS PLC
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Health Care
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United Kingdom
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AIM
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556.05
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30/12/2015
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BENCHMARK HOLDINGS PLC
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Health Care
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United Kingdom
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AIM
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371.96
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Section I- 1500 words.
• Read this Office of National Statistics Covid 19 Background Report: "The impact of the coronavirus so far: the industries that struggled or recovered"
• Analyse the performance (this should include detailed critical analysis - not description) of your chosen company using relevant financial and non-financial ratios (for at least 3 years). Your analysis should include profit ratios, efficiency, liquidity and other ratios that you consider relevant (see Chapter 6 of the core eText book (Accounting and Finance for 6 Analysing and interpreting financial statements).
Section II- 500 words
• Review this LinkedIn Video "Finance and Accounting Tips" on Corporate Governance
• Review this guide to "The new governance code requirement for AIM companies" Corporate Governance of Listed Companies on the AIM Market of the London Stock Exchange
• Critically evaluate the company's corporate governance compliance and its impact on the brand and reputation as reported in the press (print, online and social media, Annual Reports taken from your chosen company's web site).
• Discuss the proposed medium term financial strategies for your selected company to become a FTSE100 company or for your company to become dominant in the industry/sector.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
The learning outcomes to be addressed through this homework are:
• Demonstrate a critical understanding of the nature and role of the finance professional and how financial control processes impact on the organisation and its stakeholders.
• Critically evaluate the impact of the external context on the financial domain, both domestically and internationally.
• Identify, critically appraise and analyse the content, relevance and use of key financial accounting information and techniques, both within organisations and by reference to relevant research.
• Demonstrate the ability to evaluate critically and communicate effectively the financial performance of an organisation by reference to internal or published financial information.
Attachment:- Harvard-Referencing-Guide.rar